US Tax Policy Proposal: A Faith Perspective Nancy Bertaux, PhD Professor of Economics, Xavier University Christ Church Cathedral November 9, 2017

Context Long term increases in economic inequality Bill Gates, Warren Buffett and Jeff Bezos now own as much wealth ($250 B) as the bottom half of the US population Wealth represents accumulated income

Some Key Aspects Estimated 1.5 Trillion adverse impact on federal budget (cuts in revenue not offset by spending cuts). Claims that will be largely offset by 3% increased growth (economists say max impact would be perhaps 1%) Shifts tax burden proportionally, cuts tax rates on corporations (including S corporations) and wealthy individuals Continues long term trend of increased reliance on (regressive) payroll taxes for federal revenue Increases standard deduction, caps or eliminates some common deductions, may cause less use of itemized deductions. Overall, may reduce taxes somewhat for many middle income households, while raising taxes somewhat for around 30% of these households

Bottom Line In 2018, top 1% receive over 50% of the tax cuts in the proposal By 2027, this rises to over 80% Financing the tax cuts likely to lead to further taxes and spending cuts that adversely impact most households, including low and middle income

Taxes as % of GDP flat since 1950’s

Corporate tax share has fallen

Personal and payroll tax share has increased

Faith-Based Perspectives What scriptures apply? What does your faith add to your own perspective? Why are some people willing to consider factors other than personal gain? What can or should the church community do?